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What is the market price in equilibrium

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Reference no: EM132100097

Suppose two firms are engaged in Cournot competition. The firms are identical, produce homogeneous products and have marginal costs = $0 and no fixed cost.

The firms face the following inverse demand curve:

p = 300 - (q1 + q2). The best response functions for the two firms are as follows:

q1 = 150 - 0.5 * q2

q2 = 150 - 0.5 * q1

What is the market price in equilibrium?

Reference no: EM132100097

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